NEWS AND ANNOUNCEMENTS
Central Visayas Wage Board Grants Minimum Wage Increase for Workers in Private Establishments
The Regional Tripartite Wages and Productivity Board in Central Visayas issued Wage Order No. ROVII-24 on 05 September 2023. It provides an increase of PhP33.00, bringing the daily minimum wages in Class A to C areas to a range of PhP420.00 to PhP468.00 for non-agriculture establishments and PhP415.00 to PhP458.00 for agriculture and non-agriculture establishments with less than 10 workers:
Geographical Area | Non-Agriculture Establishments | Agriculture and Non-Agriculture Establishments with Less Than 10 Workers |
CLASS A | PhP468.00 | PhP458.00 |
CLASS B | PhP430.00 | PhP425.00 |
CLASS C | PhP420.00 | PhP415.00 |
In accordance with existing laws and procedures, the wage order was submitted to the National Wages and Productivity Commission (NWPC) and was affirmed on 12 September 2023. The wage order will be published on 15 September 2023 and shall take effect after 15 days or on 01 October 2023.
The increase, which considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities. The Board, comprised of representatives from the government, management and labor sectors, conducted public hearings last July 10 in Northern Cebu, July 26 in Metro Cebu, August 01 in Southern Cebu, August 10 in Bohol, and August 11 in Dumaguete, and wage deliberations on August 29, September 02, and September 05, 2023.
The new rates translate to a 7.6%-8.6% increase from the prevailing daily minimum wage rates in the region and result in a comparable 23% increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth and Pag-IBIG
The wage order is expected to directly benefit 346,946 minimum wage earners in Region VII. About 399,572 full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.
As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, retail/service establishments regularly employing not more than ten (10) workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPB for exemption from the wage increase. Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].
RTWPB-VII shall undertake information campaigns to ensure compliance and to provide assistance to enterprises in correcting possible wage distortions. For exemption applications and further clarifications on the wage order, the RTWPB may also be reached through its email address rb7@produktiboatsahod.onmicrosoft.com.
The last wage order for workers in private establishments in the region was issued on 24 May 2022 and became effective on 14 June 2022.